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The good financial year 2019 unused to achieve a balanced public administration budget

Bratislava, 16 September 2020 - The goal of a zero deficit and a balanced State budget in 2019 was not met and, in fact, the public administration managed a deficit of EUR 1.22 bn. Despite a slight increase in debt, Slovakia did not approach the sanction zone last year. “The good economic year 2019 was unused to create a financial reserve for worse times”, states the Supreme Audit Office of the Slovak Republic (SAO SR) in position on State final account submitted to the Parliament Members in September meeting by Karol Mitrík, SAO SR President. At the same time, the national authority for external control considers more than three thousand budget changes during the year to be the result of considerably formal planning, and this situation may also raise doubts about the transparency of the whole budgetary process.

The Slovak Parliament approved the budget for 2019 with aim to achieve a balanced management of the entire public sector for the first time since the establishment of an independent republic. This means that the revenues and expenditures of the public administration were budgeted at the same level, less than EUR 37 bn. In reality, however, State and public institutions spent EUR 40.4 bn in the previous year and revenues lagged behind expenditures by EUR 1.22 bn. Thus, in its position to the draft State final account of the Slovak Republic for 2019, the SAO SR states that the main budgetary objective defined by the Government of the Slovak Republic and supported by the members of the legislature was not met. Consolidated general Government debt increased and reached more than EUR 45 bn at the end of the last year representing 48% of GDP. Karol Mitrík states in the Office's position that “despite the fact that the public administration debt increased last year, it got out of the sanction zone defined by the Constitutional Act on Budget Responsibility, but the good year was not used again to create a financial reserve for worse times.”

The full text of the press release about this theme in The Slovak language is available here. Use the Google icon in the top bar for automatic translation into the desired language.